Maybe you're having trouble paying your bills on time. You have more and more late fees. You're getting calls from collection agencies. Where can you turn for help?
If this sounds familiar, Guidewell Financial's Debt Management Plan (DMP) might be a good option for you. With a DMP, you make one monthly payment through our agency, which we then disburse to your creditors. For many people, a DMP is a better choice than bankruptcy for paying their debts.
Think a DMP might be right for you? Take our Financial Fitness Quiz to find out.
There are few important things to know before you decide on a DMP.
How a Debt Management Plan Works
A Debt Management Plan, or DMP, is a way to pay off things like credit cards, medical bills, and other unsecured debt. You make one payment every month to Guidewell Financial, then we pay your creditors.
Our certified DMP counselors look at all of your finances and help you create an individualized spending plan or budget. We figure out how much you can afford to pay toward your debts every month, then contact your creditors to offer them payment through the DMP. We also give you money management tips and connect you to community resources. We follow up with you periodically, and if you have any questions or problems with your DMP, our Operations Department will help you.
How to Make Your DMP Payment
Guidewell Financial can withdraw your monthly amount directly from your checking account or through our online option. You also can send us a money order, cashier's check, or certified check. We don't accept personal checks.
Frequently Asked Questions About DMPs
Do creditors have to agree to a DMP?
DMPs are voluntary for creditors, but it helps them get the money they're owed. Often they agree to lower your interest rate, waive fees, and stop collection agency calls. Our DMPs are usually accepted, but if there's a problem, we'll notify you.
What's in it for Guidewell Financial?
We are not a loan company, and we don't lend money. Our funding for administering a DMP comes from voluntary contributions from your creditors. We work with all creditors, whether or not they contribute to our agency. Your DMP counselor will give you more details.
Does a DMP affect my credit score?
The goal of a DMP is to have a plan that improves your financial and credit standing in the long run. But because each creditor has different credit reporting policies, establishment of a plan may adversely affect your credit rating or score, or make it harder for you to obtain credit. Your Guidewell Financial counselor will talk with you about this.
What do I do until my DMP is in effect?
Continue paying your bills until your creditors approve the DMP. If you stop making payments before your creditors have accepted you into a plan, you'll face late fees, penalties, and negative entries on your credit report.
What happens after my DMP is approved?
Make sure your payment schedule pays your debts before they are due each month. Paying on time will help you avoid late fees and penalties. Nonpayment of debt may lead creditors to increase finance and other charges or undertake collection activity, including litigation.
Review monthly statements from your creditors to ensure they have received your payments. Every three months, send copies of these statements to Guidewell Financial, so we can make sure you're on track.
Get started now—schedule a free credit counseling session:
- Online, by submitting your information in Get Started Online. One of our certified credit counselors will contact you to complete the process. Our DMP services are confidential.
- By phone at 1-800-642-2227.
- Or send us an email: [email protected].
"I was about ready to file bankruptcy. I called one of my credit companies as I needed to reduce my payments, and they suggested I call (Guidewell Financial). I signed up, and now my bills are being paid every month."
– Guidewell Financial Client